European Industrials: Mining equipment: large projects = Cu(e) for more upside, u/g Epiroc & FLS to Buy

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European Industrials: Mining equipment: large projects = Cu(e) for more upside, u/g Epiroc & FLS to Buy

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European Industrials

Mining equipment: large projects = Cu(e)

for more upside, u/g Epiroc & FLS to Buy

Rating Change

Big copper to underpin further upgrades and re-rating 04 June 2026

We turn incrementally positive on mining equipment since (1) our analysis suggests large Equity

copper FIDs could add 2/9% to ‘26/27 upstream mining OE orders; (2) downstream orders Europe

are likely to soon mirror upstream strength given usual 1-3 quarter lag; (3) this makes the Industrials

space more compelling than EU short-cycle where visibility has deteriorated (see our Alexander Jones, CFA >>

report: Recovery in strait-jacket). We now see 2/5% avg upside to 2026/27 group order Research Analyst

cons, and hence 2/5% upside to 2027/28 cons profits. The sub-sector now trades at a c. MLI+44 (UK)20 7995 5828

3% discount to the SXNP, in line with its historical avg (-5%) despite a strong order alexander.jones2@bofa.com

outlook which should drive faster future growth. We upgrade Epiroc to Buy (from U/P) Tore Fangmann >>

Research Analyst

and FLS to Buy (from Neutral) and reiterate our Buy on Weir. We stay more cautious on Merrill Lynch (DIFC)

Neutral-rated Sandvik (raise PO) & Metso due to short-cycle/tungsten & valuation +971 4 425 8210

tore.fangmann@bofa.com

respectively (see Exhibit 1 for more detail).

Benjamin Heelan >>

We track >$100bn potential copper FIDs over next 4 years ResearchMerrill LynchAnalyst(DIFC)

We see large copper FIDs starting imminently, with upstream orders usually following a few +44 20 7996 5723 benjamin.heelan@bofa.com

weeks later. Our bottom-up analysis of almost 30 projects globally suggests these could add Uma Samlin >>

c.